The government has imposed anti-dumping duty of up to $0.671 per kg on imports of a chemical used in the manufacture of household cleaning products from China to protect the domestic industry.
"The anti-dumping duty imposed... Shall be effective up to and inclusive of March 20, 2011, and shall be payable in Indian currency," a notification by the Department of Revenue said.
The restrictive duty on 'Sodium Tripoly Phosphate' would range from $0.307 per kg to $0.671 per kg, it said.
The Directorate General of Anti-Dumping and Allied Duties (DGAD), a nodal agency under the Commerce Ministry, had recommended imposition of the duty after an investigation.
While the Commerce Ministry recommends anti-dumping duty, the Finance Ministry imposes it.
Tata Chemicals Ltd (TCL), Mumbai, and others local firms had alleged dumping of the chemical by China. TCL produces the chemical at its Haldia plant and the company accounts for over 90 per cent of domestic production.
The DGAD had concluded in its probe that the domestic industry had suffered a material injury on account of dumped imports of the chemical from China.
Imports of the chemical from China increased to 41,367 tonnes in 2008-09 from 15,356 tonnes in 2005-06.
Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product-to-product and from country-to-country.
Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in cheap imports. As a counter-measure, they impose duties within the multilateral regime of the WTO.
Anti-dumping measures are taken to ensure fair trade and provide a level playing field to domestic players. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.